Cost Sheet

Cost sheet is a statement, which shows various

components of total cost of a product
 Prime Cost= Direct Materials + Direct Labour + Direct Expenses

Materials Consumed= Materials Purchased + Opening Stock -Closing Stock

 Illustration 1

Calculate prime cost from the following particulars for a

production unit:
Cost of material purchased Rs. 30,000
Opening stock of material Rs. 6,000
Closing stock of material Rs. 4,000
Wages paid Rs. 3,000
Rent of hire of a special machine for production Rs.5,000
Factory Cost= Prime Cost + Factory Overheads
Calculate factory cost from the following particulars:
Material consumed Rs. 60,000
Productive wages 20,000

Direct Expenses 5,000
Consumable stores 2,000

Oil grease/Lubricating 500
Salary of a factory manager 6,000
Unproductive wages 1,000
Factory rent 2,000
Repair and Depreciation on Machine 600
Total Cost of Production = Factory Cost +
Office & Administrative Overheads

Direct material 90,000


Direct Labour 32,000

Direct Expenses 9,000

Factory overheads 25,000

Office and administration overheads 18,000
Cost of Goods Sold =Total Cost of Production + Opening
Stock of Finished Goods - Closing Stock of Finished Goods

Cost of Sales = COGS + Selling & Distribution Overheads

From the following information calculate the total cost.
Direct material 1,60,000
Direct Labour 52,000
Direct Expenses 19,000



Factory overheads 45,000

Office and administration overheads 28,000
Selling and distribution overheads 33,000

 Sales = Total Cost + Profit

Opening stock of raw material 12,500

Purchases of raw material 1,36,000
Closing stock of raw material 8,500
Direct wages 54,000
Direct expenses 12,000

Factory overheads 100% of direct wages

Office and administrative overheads 20% of works cost
Selling and distribution overheads 26,000 

Cost of opening stock of finished goods 12,000
Cost of Closing stock of finished goods 15,000
Profit on cost 20%
Work out in cost sheet form, the unit cost of production per tonne of special
paper manufactured by a paper mill in March of the current year from the
following data:

Direct Paper Pulp- 500 tonnes@Rs.500 per tonne

Materials Other materials-100 tonnes@Rs.300 per tonne

Direct Labour 80 skilled men@Rs.30 per day for 25 days

40 unskilled men@Rs.20 per day for 25 days

Direct Special Equipment-Rs. 30,000

Expenses Special Dyes- Rs. 10,000

Works/Factory Variable@100% and fixed@60% on direct wages

Overheads Administrative Overheads@10% of factory cost
Selling & Distribution Overheads@15% on Work Cost
400 tonnes of special paper was manufactured and
sold@Rs. 2,000 per tonne and Rs.8,000 was realised
by the sale of waste material during the course of
manufacture. The scrap value of the special
equipment and dyes after utilisation in
manufacture is nil.
The following extracts of costing information related to commodity
Y for the half year ending September 30 of the current year:

Purchase of Raw 1,32,000

Materials

Direct Wages 1,10,000

Rent, rates, 44,000

insurance and
works overhead
Carriage inwards 1,584

Stock, April 1 of 22,000

the current year:
Raw Materials
Finished Products 17,600
(1600 tonnes)

Stock, September 30 24,464

of the current year:
Raw Materials
Finished Products 35,200
(3200 tonnes)

Work in Progress, 5,280

April 1

Work in Progress, 17,600

September 30
Cost of Factory 8,800
Supervision

Sale of Finished 3,30,000

Product
Advertising, discounts allowed and selling costs
amounted to 0.75 per tonne sold and 25,600 tonnes
of commodity were produced during the period.

You are required to ascertain

(a)the value of raw materials used

(b)prime cost
(c)the cost of turnover of the period
(d)net profit per tonne of the commodity sold.